Question 1

Exhibit 1A-5 Straight line
  
-As shown in Exhibit 1A-5,the slope of straight line CD:

Accepted Answer

A)  decreases with increases in X. 
B)  increases with increases in X. 
C)  increases with decreases in X. 
D)  remains constant with changes in X. 
A)  decreases with increases in X. 
B)  increases with increases in X. 
C)  increases with decreases in X. 
D)  remains constant with changes in X. D

Question 2

A two-dimensional graph can only represent the relationship between two variables.

Accepted Answer

A) True 
 B)False  False

Question 3

A downward-sloping straight line exhibits a direct relationship between two variables.

Accepted Answer

A) True 
 B)False  False

Question 4

Exhibit 1A-4 Straight line
  
-In Exhibit 1A-4,as X increases along the horizontal axis,corresponding to points A-D on the line,the Y value remains unchanged at 40 units.The relationship between the X and Y variables is:

Accepted Answer

A)  direct. 
B)  inverse. 
C)  independent. 
D)  undefined. 
A)  direct. 
B)  inverse. 
C)  independent. 
D)  undefined.

Question 5

Exhibit 1A-6 Straight line
  
-In Exhibit 1A-6,the slope of the straight line A-D is:

Accepted Answer

A)  0. 
B)  1. 
C)  1/2. 
D)  -1. 
A)  0. 
B)  1. 
C)  1/2. 
D)  -1.

Question 6

Exhibit 1A-3 Straight line
  
-In Exhibit 1A-3,the slope of straight line AB is:

Accepted Answer

A)  positive. 
B)  zero. 
C)  negative. 
D)  variable. 
A)  positive. 
B)  zero. 
C)  negative. 
D)  variable.

Question 7

A straight line or curve can shift when a factor not included on the vertical axis or horizontal axis changes.

Accepted Answer

A) True 
 B)False

Question 8

A line that has a different slope at each point is a:

Accepted Answer

A)  curve. 
B)  straight line. 
C)  vertical line. 
D)  horizontal line. 
A)  curve. 
B)  straight line. 
C)  vertical line. 
D)  horizontal line.

Question 9

An upward-sloping straight line exhibits a direct relationship between two variables.

Accepted Answer

A) True 
 B)False

Question 10

When an inverse relationship is graphed,the resulting line or curve is:

Accepted Answer

A)  horizontal. 
B)  vertical. 
C)  upward-sloping. 
D)  downward-sloping. 
A)  horizontal. 
B)  vertical. 
C)  upward-sloping. 
D)  downward-sloping.

Question 11

Exhibit 1A-6 Straight line
  
-In Exhibit 1A-6,the slope of straight line A-D is:

Accepted Answer

A)  positive. 
B)  zero. 
C)  negative. 
D)  variable. 
A)  positive. 
B)  zero. 
C)  negative. 
D)  variable.

Question 12

The slope of a line is calculated as the ratio of the "rise" over the "run".

Accepted Answer

A) True 
 B)False

Question 13

As shown in Exhibit 1A-1,the slope of straight line AB:

Accepted Answer

A)  decreases with increases in X. 
B)  increases with increases in X. 
C)  increases with decreases in X. 
D)  remains constant with changes in X. 
A)  decreases with increases in X. 
B)  increases with increases in X. 
C)  increases with decreases in X. 
D)  remains constant with changes in X.

Question 14

Exhibit 1A-7 Straight line relationship
  
-Which of the following would cause a shift in the relationship shown in Exhibit 1A-7?

Accepted Answer

A)  A rise in people's annual income. 
B)  A rise in people's expenditure on air travel. 
C)  A rise in the price of air travel. 
D)  All of the above would shift the line in the graph. 
A)  A rise in people's annual income. 
B)  A rise in people's expenditure on air travel. 
C)  A rise in the price of air travel. 
D)  All of the above would shift the line in the graph.

Question 15

Exhibit 1A-3 Straight line
  
-Straight line AB in Exhibit 1A-3 shows that:

Accepted Answer

A)  increasing values for X reduces the value of Y. 
B)  decreasing values for X increases the value of Y. 
C)  there is an inverse relationship between X and Y. 
D)  all of the above. 
A)  increasing values for X reduces the value of Y. 
B)  decreasing values for X increases the value of Y. 
C)  there is an inverse relationship between X and Y. 
D)  all of the above.

Question 16

Direct relationships are illustrated using upward-sloping lines and curves.

Accepted Answer

A) True 
 B)False

Question 17

The graph of a direct relationship will have a positive slope.

Accepted Answer

A) True 
 B)False

Question 18

An inverse relationship exists when:

Accepted Answer

A)  there is no association between two variables. 
B)  one variable increases and there is no change in the other variable. 
C)  one variable increases and the other variable increases. 
D)  one variable increases and the other variable decreases. 
A)  there is no association between two variables. 
B)  one variable increases and there is no change in the other variable. 
C)  one variable increases and the other variable increases. 
D)  one variable increases and the other variable decreases.

Question 19

Exhibit 1A-4 Straight line
  
-In Exhibit 1A-4,the slope of straight line A-D is:

Accepted Answer

A)  positive. 
B)  zero. 
C)  negative. 
D)  variable. 
A)  positive. 
B)  zero. 
C)  negative. 
D)  variable.

Question 20

Suppose two variables are directly related.If one variable rises,then the other variable:

Accepted Answer

A)  also rises. 
B)  falls. 
C)  remains unchanged. 
D)  reacts unpredictably. 
A)  also rises. 
B)  falls. 
C)  remains unchanged. 
D)  reacts unpredictably.

Exam 1: A: Appendix: Applying Graphs to Economics

Exhibit 1A-5 Straight line -As shown in Exhibit 1A-5,the slope of straight line CD:

A two-dimensional graph can only represent the relationship between two variables.

A downward-sloping straight line exhibits a direct relationship between two variables.

Exhibit 1A-4 Straight line -In Exhibit 1A-4,as X increases along the horizontal axis,corresponding to points A-D on the line,the Y value remains unchanged at 40 units.The relationship between the X and Y variables is:

Exhibit 1A-6 Straight line -In Exhibit 1A-6,the slope of the straight line A-D is:

Exhibit 1A-3 Straight line -In Exhibit 1A-3,the slope of straight line AB is:

A straight line or curve can shift when a factor not included on the vertical axis or horizontal axis changes.

A line that has a different slope at each point is a:

An upward-sloping straight line exhibits a direct relationship between two variables.

When an inverse relationship is graphed,the resulting line or curve is:

Exhibit 1A-6 Straight line -In Exhibit 1A-6,the slope of straight line A-D is:

The slope of a line is calculated as the ratio of the "rise" over the "run".

As shown in Exhibit 1A-1,the slope of straight line AB:

Exhibit 1A-7 Straight line relationship -Which of the following would cause a shift in the relationship shown in Exhibit 1A-7?

Exhibit 1A-3 Straight line -Straight line AB in Exhibit 1A-3 shows that:

Direct relationships are illustrated using upward-sloping lines and curves.

The graph of a direct relationship will have a positive slope.

An inverse relationship exists when:

Exhibit 1A-4 Straight line -In Exhibit 1A-4,the slope of straight line A-D is:

Suppose two variables are directly related.If one variable rises,then the other variable:

Introducing the Economic Way of Thinking

Production Possibilities,Opportunity Cost,and Economic Growth

Part 1: Market Demand and Supply

Part 2: Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

A: Appendix: The Self-Correcting Aggregate Demand and Supply Model

Fiscal Policy

The Public Sector

Federal Deficits,Surpluses,and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

A: Appendix: Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

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